Carson was the president of TDML Inc, a boutique trading firm specializing in commodity derivatives and FOREX trading. He apparently raised $4 million from several friends but instead of properly investing their money, Carson siphoned $2.5 million into his own pockets, sending investors fake statements

SILive.com: All the while, Carson sent fictitious monthly settlements to his victims detailing the status of their purported investments, according to prosecutors.

"This defendant, while not quite rising to the level of a Bernard Madoff, is alleged to have stolen $2.5 million from his investors, who also happen to be friends and social acquaintances," District Attorney Daniel Donovan said in a press release.

Carson's lawyer blames the losses on trading volatility and the state of the economy.